The world is changing every minute, every second. Change has taken over the field of marketing too. Internet marketing has evolved over the years and it has become one of the powerful means of marketing. The successful harnessing of internet marketing has given rise to the benefits such as online purchase and sale of products and services.In the previous article we talked about online affiliate jobs which is one of the best online jobs for those with good marketing skills. In this article we will talk about the advantages and disadvantages associated with online business.
Doing business online is advantageous in many ways. It reduces cost and avoid expenses on paperwork. We all know the fact that online transactions costs are lower.
Let’s first talk about the advantages of doing business online in brief :
Better customer service
Gathering information about a customer on the internet is lot more easier. It is very easy to collect information about a customer such as the location, recent purchase, account history and status of payment, recent products viewed etc. The information collected can be used to improve customer service. Based on such information it helps companies to provide better service to customers and improve the quality of service.It is possible for customers to track their own orders, check the status of their orders etc.
Personalization of services
Several different communication channels like email, chat, telephone, customer feedback about products are all combined to assist a better personalization of services. Customers have the option to select the mode of communication in which they are comfortable doing business.
Reduction in customer service cost
Since customers are able to search the products on their own, they are able to get exactly what they are looking for. It helps companies to reduce the expenditure on customer service. All the information related to a product is available on the customer’s screen.
Benefits of online catalogue
Online catalogues are regularly updated with new models, products, pricing discounts etc. Printing and mailing costs are thus avoided and customers can indulge in price promotions. It allows customers to look at the products within their specific price range. Open catalogue helps customers to confirm the availability of a product and time of delivery. Companies can offer special discounts, free delivery, coupons to their loyal customers on the basis of purchase history.
Customers can directly contact the suppliers and remove all mediators.
Fast technological advancements have made online business more prominent all over the world But it is not just about benefits. There are also disadvantages of online business.
Now let’s discuss some of the disadvantages associated with online business :
Lack of customer awareness
It is really hard for those people who does not have knowledge about electronic communication like internet and computers. They find online business very difficult.
Not for small business
Small businesses do not want to take extra burden since they have no knowledge of online business functions. The cost of offering the product or providing the service should take into account the expenditure on software, hardware, effort, website design and maintenance and online advertising costs.
Before implementing online business and its services in the business, it is necessary to complete certain legal formalities like authorization and authentication.
The security of various sites is doubted by visitors. Many visitors do not want to risk transacting online using credit or debit cards for fear of having their card information being stolen.